Five reasons why you might be a mortgage prisoner – and how to escape | Money | guardian.co.uk

Five reasons why you might be a mortgage prisoner – and how to escape | Money | guardian.co.uk
If you've had the same mortgage for a while, or are sitting happily on your lender's standard variable rate (SVR), you could be oblivious to some of the changes that have taken place in the market over the past few years.

Lenders have been busy altering criteria which, combined with house prices that have yet to recover to their 2007 peak, means you could struggle if you ever decided to move your loan to another bank or building society.

Here are some reasons why you might be a mortgage prisoner, and what action you can take if you decide to switch.

You have an interest-only loan

A few years ago almost any lender would let you take out a mortgage on the basis you would pay off the interest each month, but only repay the original loan at the end of the 25-year term. They would ask that you had a plan to repay that debt – maybe an investment or expected inheritance – but tended not to make checks. .......